Samenta national president Datuk William Ng.
PETALING JAYA: Micro, small and medium enterprises (MSMEs), accounting for nearly 97% of all business establishments in the country, are facing increasing challenges due to rising logistics costs, says the Small and Medium Enterprises Association of Malaysia (Samenta).
Delivery charges have steadily climbed in response to shipping disruptions in the Red Sea and unexpected spikes in demand, Samenta said.
Adding to the strain, the Malaysian Communications and Multimedia Commission (MCMC) has proposed regulating courier base prices to sustain the industry, a move that has sparked concerns about its potential impact on cost-sensitive businesses.
The topic has been widely discussed among logistics industry players such as Pos Malaysia Bhd
.
The changes include pushing for the implementation of a floor price for parcels, which Pos Malaysia argued would help create a more level playing field within the courier sector.
Malaysia’s courier and parcel market is expected to grow significantly, reaching an estimated value of US$1.58bil by 2025, driven by the eCommerce boom. However, the promising growth could be hindered by inefficiencies and rising costs that disproportionately impact SMEs and consumers.
Affordable logistics services remain a critical factor in ensuring equitable access to the benefits of market expansion, said the association.
“For SMEs, the logistics costs can significantly influence their competitiveness. Many are now faced with the difficult trade-off of whether to absorb rising delivery expenses and shrink already slim margins, or pass the costs on to customers, risking reduced sales.
“Both options create financial strain, particularly as businesses navigate economic recovery and increasing market competition,” Samenta said in a statement.
To ensure Malaysia’s logistics sector continues to support SMEs and the broader economy, innovation and digital transformation must take centre stage, said Samenta.
“Advances in automation and artificial intelligence (AI) offer opportunities to improve operational efficiency and service reliability, where automated warehousing systems can streamline inventory management, while AI-powered route planning can minimise delivery delays and optimise fuel consumption.
“Tools such as real-time shipment tracking and predictive analytics allow SMEs to anticipate and mitigate potential disruptions while optimising their operations.”
Meanwhile, Samenta national president Datuk William Ng said SMEs continue to grapple with rising costs and the pressure to increase selling prices.
“With additional compliance requirements such as the e-invoicing mandate and adherence to environmental, social, and governance standards, businesses are under significant strain.
“To ease this burden, we urged policymakers, regulators, and logistics players to focus on delivering solutions that prioritise efficiency, affordability, and innovation to support the resilience and growth of SMEs,” he said.
The association said relying solely on cost increases to address logistical challenges is no longer viable.
The future of Malaysia’s logistics industry lies in collaboration among industry players, policymakers, and SMEs to foster a logistics ecosystem that promotes innovation and rewards efficiency. — Bernama
